(1) Priority in inspections will be given to those systems and plants with greater risk potential. The following factors will be considered in determining potential risk: the size of the plant or system and the number of customers it serves, the ratio of total pipe to cathodically protected pipe, the ratio of total pipe to coated pipe, the leaks per mile of main, the percentage of unaccounted-for gas volume, and the number of past accidents.

(2) Inspections will include reviews of the operator's standard practices and records concerning design, construction, operation, maintenance, inspection, emergency procedures, and damage prevention programs. Field inspections may include, but are not limited to: checks of cathodic protection levels, construction practices, barricading or protection of equipment from damage, witnessing operational checks of overpressure protection and regulating equipment, odorization, leak surveys, and other field functions. Any documentation, records, or physical evidence necessary to support allegations of noncompliance may be obtained by the investigator during the inspection or at any later date.

When an evaluation of an operator's records, practices, or facilities indicates that the operator is not in compliance with a pipeline safety regulation, the investigator will informally discuss the probable violation of the regulation with the operator whenever practical before concluding the inspection. The operator may take on-site corrective action during the inspection or during the concluding interview at the facility when a probable violation exists. Whenever a probable violation is found, the investigator will issue a written inspection report pursuant to OAR 860-031-0015.

(1) As soon as practical after an inspection where a probable violation was noted, a written inspection report listing all violations found will be issued. The report will contain a notice that a probable violation exists, a short description of the probable violation, and a citation to the rule(s) in point. The report will specify reasonable times for the operator to submit a response and to correct the violation. If the probable violation was corrected at the time of the inspection or concluding interview, the corrective action will be noted in the inspection report.

(2) The operator's written response pursuant to OAR 860-031-0020 must be received by the Commission's gas pipeline safety section within the time specified in the inspection report. If no written response is received within such time, the probable violation will be taken to be admitted.

Informal Conference for a Probable Violation by a Gas Pipeline Operator

A date, time, and place for the informal conference will be arranged. At the conference the operators may explain their positions and may present alternatives for remedying the probable violation. The operators and the gas pipeline safety staff may agree on a plan to remedy the probable violation.

Referral to the Commission of a Probable Violation by a Gas Pipeline Operator

After receiving a response from the operators and after holding the informal conference, if any, or after receiving no response within the time specified in the inspection report, the Commission's gas pipeline safety staff will determine whether to refer the case to the Commission for formal action. In such case, the staff shall notify the Commission of the response chosen by the operators and the result of the informal conference, if any.

Civil penalties for failure to comply with gas pipeline safety rules or regulations shall be based on the gravity of the violation, the extent of the operators' past violations, and other matters as justice may require.

NOTE: ORS 756.180 provides for the enjoining of a violation of the utility laws. ORS 757.991 provides for penalties for failure to comply with gas pipeline safety rules or regulations of $10,000 per day, to a maximum of $500,000 for any related series of failures.

(1) Upon request or its own
motion, the Commission may waive any of the Division 031 rules for good cause shown.
A request for waiver must be made in writing, unless otherwise allowed by the Commission.
The application must include a statement of reasons why the regulations are not
appropriate and why a waiver is consistent with gas pipeline safety. The Commission
may grant a waiver if:

(a) The noncompliance does not
entail a significant risk to the operator's employees or the public; or

(b) The degree of risk does
not justify the expense of bringing the system into compliance.

(2) If the Commission decides
to grant a waiver, it shall issue the waiver under such terms and conditions as
are appropriate, with a statement of reasons for granting the waiver. The waiver
shall contain a recital that it is subject to the approval of the Secretary of Transportation
of the United States Department of Transportation. If the Commission denies the
waiver, it shall notify the applicant of the reasons for the denial.

(3) The Commission shall give
the Secretary of Transportation of the United States Department of Transportation
written notice 60 days before the effective date of the waiver. If, before the effective
date of the waiver, the Secretary objects in writing to the granting of the waiver,
the Commission's action granting the waiver will be stayed. The Commission may present
the case for the waiver to the Secretary, who, in such case, shall determine finally
whether the requested waiver will be granted. If the Commission does not present
the case for the waiver to the Secretary, the grant of the waiver shall be withdrawn
and the waiver shall be denied.

The official copy of an Oregon Administrative Rule is
contained in the Administrative Order filed at the Archives Division,
800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the
published version are satisfied in favor of the Administrative Order.
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